En 11 meses en este Mercado he ganado 90k€ con mi Daytrading tras 8 años sin resultados | SergiDown

Summary

In this insightful discussion, experienced trader Sergio shares his journey and strategies in trading, particularly focusing on small cap stocks. Starting as a self-taught trader, Sergio experimented with various markets and methodologies before finding success in small caps. He emphasizes the importance of a systematic approach, utilizing backtesting and quantitative analysis to develop profitable strategies. Sergio also discusses the significance of risk management, his preference for short positions due to market tendencies, and the challenges of adapting to new trading environments. The conversation highlights the value of continuous learning, adapting, and embracing change in the dynamic world of trading.

Takeaways

• 😀 Sergio, a systematic day trader specializing in short positions of American small-cap stocks, has been active in the markets since 2015 but only found success with small caps.
• 📊 Sergio's trading strategy is based on backtesting and quantitative analysis, focusing on a statistical edge provided by the inherent bias in small-cap stocks.
• 📉 He operates primarily on the short side due to the statistical tendency of small-cap stocks to decline, which provides a favorable setup for short positions.
• 🤖 Sergio's approach is highly systematic and could be automated; however, he prefers the flexibility of manual trading to feel more in control.
• 📈 Despite the high volatility and risk in small-cap trading, Sergio manages his risk with strict stop-loss orders and position sizing to protect against large upward spikes.
• 📝 He uses a spreadsheet to meticulously plan and track each trade, calculating entry points, stop-loss levels, and position sizes based on predefined risk.
• 🔍 Sergio's pre-market routine includes reviewing trade records, setting up trading platforms, and scanning for potential small-cap stocks that fit his criteria.
• 🚫 He avoids adjusting his trades actively during the market session, sticking to his predetermined entry and exit strategies to avoid worsening his risk-reward ratio.
• 📉 Sergio's experience suggests that small-cap stocks offer a unique opportunity for retail traders due to their volatility and the potential for high-frequency trading.
• 💡 For aspiring traders, Sergio recommends seeking out education and mentorship that provides transparency and proof of results, such as connecting a trading account to a verification platform like Kino.
• 🔄 Sergio advises traders not to be afraid of changing their approach or market focus if their current strategy is not working, emphasizing the importance of adaptability and continuous learning.

Q & A

What is the main focus of the conversation between Sergio and the interviewer?

The conversation primarily revolves around Sergio's trading experience, particularly in the small-cap markets, his strategies, and the evolution of his trading approach since 2015.

What trading markets did Sergio explore before focusing on small caps?

Sergio explored various markets including forex, futures, and options before concentrating on small-cap stocks.

What does Sergio consider to be the key difference in his approach when trading small caps compared to other markets?

Sergio identifies a clear downward bias in small caps, which he exploits using a systematic and quantitative approach that is objective and based on price action.

What is the significance of the term 'price action' in Sergio's trading methodology?

Price action refers to Sergio's method of analyzing the market by studying price movements and structures, which is a crucial part of his objective trading strategy.

How does Sergio describe his trading style in terms of entry and exit strategies?

Sergio describes his trading style as systematic, with a clear entry and exit strategy. He uses predefined parameters for each trade, including stop-loss levels and position sizing.

What role does statistics play in Sergio's trading decisions?

Statistics play a significant role in Sergio's trading decisions, as he uses them to identify patterns and biases in the market, particularly the downward trend in small-cap stocks.

What is the reason behind Sergio's choice to only trade short positions in small caps?

Sergio chooses to only trade short positions in small caps because the market is statistically biased towards the downside, providing a favorable setup for short trades.

How does Sergio manage the risk associated with the volatile nature of small-cap stocks?

Sergio manages risk by setting stop-loss orders, using position sizing that is a small fraction of his account balance, and by being disciplined with his entry and exit strategies.

What is Sergio's approach to scaling his trading positions, and how does he decide when to enter or exit a trade?

Sergio scales his positions based on a predefined risk level for each trade, and he decides to enter or exit a trade based on his systematic strategy and the price action of the stock.

How does Sergio's background in engineering and quantitative analysis influence his trading style?

Sergio's background in engineering and quantitative analysis predisposes him towards objective, data-driven decision making, which is reflected in his systematic and quantitative trading approach.

What advice does Sergio give to new traders who are struggling to find their edge in the market?

Sergio advises new traders not to be afraid of changing their approach if it's not working, to try new strategies and markets, and to learn from different mentors and experiences.